On the fringes of Australia’s big cities, former industrial areas are proving popular with a growing number of corporates. JLL Real Views explores why they’re setting up alongside start-ups and creative agencies.
Converted warehouses and former industrial precincts just outside major cities have long provided inventive office space and environs for plucky tech starts-ups and creative agencies.
But increasingly a new, more buttoned-up neighbour has been moving in: big corporations.
Companies like banks and major consultancy firms are competing for office space in repurposed industrial areas, a move that is perceived as a way to foster creativity while saving on rent compared to traditional city-centre locations.
“Many of our corporate clients have a lot of support or back-of-house staff, and they don’t actually need to be in the city centre,” says Phylicia Cohen, NSW commercial manager for JLL’s Project and Design Services team in Australia. “With the way the rental market is going and the low incentives, it will eventually push a lot of these companies to look to the fringes.”
Commonwealth Bank Australia will be moving into the Australian Technology Park, a 14.5-hectare former locomotive workshop in Eveleigh, Sydney, which is being transformed into a tech precinct.
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